Follow a stock long enough, and when something crazy happens and the stock takes a dive, you sit back, take a breath, and as long as the fundamentals have not changed, you go all in. I only wish I could have bought more.
Recently, NBG traded as high as $11.25 on very bullish news of the company's 30% per year growth forecasts for each of the next 3 years; strong results in their new markets; and lots of positive sentiment.
Naturally, after such a huge run up, NBG took a little breather, and fell down to $11.10 or so. However, the real shock came today, this morning, when NBG traded as low at $10.30, down 7.2%. The decline was spurred by a rough day for European banks and some reports of instability and attacks in Iran and Afghanistan. The US major indicies were also down 1%-1.5%
Nothing has materiallty changed and I took the opportunity to buy more at $10.38 - too bad it is now back at $10.60 and will likely run back to $11 sooner rather than later (I actually had my order in for $10.41, but ETRADE was nice enough to get me a slightly better price). I was especially intrigued by the relatively low volume on the decline, which made me feel even more confident in my decision to buy more.
This is what I call "The Price of Greatness". It correlates to Warren Buffet's quote to be greedy when others are fearful and fearful when others are greedy. Short and sweet, it is the response to days like this - to put more money on the table when it's hard to do so or take it off and take some profits when it really has had its day in the sun, but greed likes to tell you it can't go down.
Thus far, with NBG at $10.61, my decision to buy at $10.38 looks genius. We'll see - but I think I am right.
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